Omega Navigation: proposed settlement with lenders includes cash payments, transfer of vessels

By Lisa Kerner

Charlotte, N.C., Dec. 13 - Omega Navigation Enterprises Inc. asked the court to approve a settlement agreement with its senior lenders, according to a court documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

A hearing is scheduled for Jan. 9.

Under the settlement agreement, the senior lenders shall make cash payments to the debtors' estates for the following purposes, provided the committee does not oppose the settlement agreement and corresponding motion:

• $500,000 to debtors to pay allowed priority claims, not including professional fees, and the claims of general unsecured creditors;

• $450,000 to debtors either for committee professionals for accrued and unpaid allowed professional fees and expenses, minus any amounts paid on or after Nov. 26;

• About $5.03 million to debtors to pay professionals for accrued and unpaid allowed professional fees and expenses and certain other debtor out-of-pocket expenses minus any amounts paid on or after Nov. 26; and

• $250,000 to debtors' lead counsel, Bracewell & Giuliani LLP, for legal fees.

In addition, the debtors shall transfer eight vessels to the senior lenders, according to the filing.

Omega Navigation is an Athens, Greece-based provider of marine transportation services. The company filed for bankruptcy on July 8, 2011 under Chapter 11 case number 11-35926.

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